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The Sharing Economy

Its Pitfalls and Promises

By: Michael C. Munger

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Paperback | 27 September 2021

At a Glance

Paperback
168 Pages

Dimensions(cm)
22.61 x 15.19 x 1.6

Paperback

$40.75

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Transactions have always taken place. For hundreds of years that 'place' was a market or, more recently, a shopping mall. But in the past two decades these physical locations have increasingly been replaced by their virtual counterparts - online platforms. Here, author Michael C. Munger demonstrates how these platforms act as matchmakers or middlemen, a role traders have adopted since the very first exchanges thousands of years ago. The difference today is that the matchmakers often play no direct part in buying or selling anything - they just help buyers and sellers find each other. Their major contribution has been to reduce the costs of organising and completing purchases, rentals or exchanges. The Sharing Economy: Its Pitfalls and Promises contends that the key role of online platforms is to create reductions in transaction costs and it highlights the importance of three 'Ts' - triangulation, transfer and trust - in bringing down those costs.

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